Newcastle’s in-between status costing the city $170m in state grants

Newcastle’s lord mayor told an inquiry the city is “not regional enough for regional programs and not Sydney enough for metro funding programs”.

City of Newcastle’s lord mayor Nuatali Nelmes said the city missed out on $170m that could have driven investment. Picture: Ryan Osland.

Newcastle is missing out on over $170m in NSW Government funding because of its confused status, according to Lord Mayor Nuatali Nelmes.

Ms Nelmes on Friday told a parliamentary inquiry examining the integrity, efficacy and value of State Government grants that Newcastle is “not regional enough for regional programs, and not Sydney enough for metropolitan funding programs”.

“Newcastle is stuck between a region and a city,” Cr Nelmes said.

“(It’s) falling between the lines of an unjust administrative construct.

“Our classification varies between departments. There is no consistency.”

Lord Mayor Nuatali Nelmes said Newcastle is “stuck”. Picture: Peter Lorimer.

Cr Nelmes told the inquiry Newcastle’s exclusion from grants programs affects NSW as a whole, with the city contributing 30 per cent of the state’s gross domestic product.

She said if Newcastle received its fair share based on 2019 GDP, the city would be receiving an extra $170.4m in NSW Government Grants.

Cr Nelmes’ submission was based on a report by the University of Newcastle’s Hunter Research Foundation Centre, commissioned by City of Newcastle to examine the city’s experience with State Government grants.

It identified a number of funding opportunities Newcastle had been “locked out of”.

City of Newcastle was recently deemed ineligible for a share in the $100m Regional Jobs Creation Fund, despite neighbouring Central Coast and Lake Macquarie councils being eligible.

“The irony that Regional NSW’s Hunter office and staff, the people facilitating this program, are based in the Newcastle LGA is not lost on council,” Ms Nelmes said.

She said state planning was Sydney-centric.

“Numerous voices have been calling for increased investment and focus on second cities or gateway cities in response to COVID-19.

Lord mayor Nuatali Nelmes said Newcastle should be reclassified as a “gateway city”. Picture: Waide Maguire.

“Many people are making their own choices.

“Local real estate data shows that demand in Newcastle has never been stronger.”

Ms Nelmes said the most recent state budget was a “missed opportunity” to create jobs and investment in the city.

City of Newcastle’s submission to the inquiry called for consistent geographical outlines for all grants programs, and a third classification of gateway or second cities, to include Newcastle and Wollongong.

The inquiry will look at the range and availability of funding programs, the manner in which grants are determined, and measures to ensure public confidence in the allocation of money.

The committee will release its findings by March 21, 2021.